Key Fundamentals of the U.S. Session: From U.S. Durable Goods Orders to FOMC Meeting Minutes; May 25, 2022

U.S. Durable & Core Durable Goods Orders Data

Today’s U.S. Calendar will remain important one as U.S. will release Durable & Core Durable goods orders data at 1230 GMT/1800 IST and FOMC Meeting minutes due at 1800 GMT/2330 IST.

Durable goods order data is usually revised via the Factory Orders report released about a week later. Durable goods are defined as hard products having a life expectancy of more than 3 years, such as automobiles, computers, appliances, and airplanes therefore The Core data is therefore thought to be a better gauge of purchase order trends. Both are leading indicator of production – rising purchase orders signal that manufacturers will increase activity as they work to fill the orders. Here Actual’ greater than ‘Forecast’ is good for currency.

Let’s see how gold has reacted during the previous data release:

April 26:

March 24:

U.S. FOMC Meeting Minutes:

It’s a detailed record of the FOMC’s most recent meeting, providing in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.

As it is well known news for the Financial Market that the Fed plans to follow through on half-point hikes in June and July, boosting the policy rate to 1.75% and 2%. The Fed will remain flexible, Powell said last week, moving faster or slower on rates as needed. Last week, Powell continued to be hopeful, however, saying there is “clear and convincing evidence” inflation is coming down. Let’s wait for today’s Meeting Minutes which will provide insight view of the latest FOMC Meeting held on May 04, 2022.

Let’s see how Gold has reacted during the previous data release:

April 06:

Feb 16:

Technical View:

XAU/USD (Gold):

• Gold weakens on Wednesday and touches $1,853 mark.
• Today pair made intraday high at $1,868 and low at $1,853 mark.
• A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
• A sustained close above $1,864 on H1 chart requires for the upside rally.
• Alternatively, a consistent close below $1,848 on H1 chart will test further supports.

Take a look and do trade wisely!
Good Luck